EX-99 3 ex99for8kfor071603.txt Exhibit 99.1 July 16, 2003 FOR IMMEDIATE RELEASE Contact: John I. Jelavich, President/CEO (530) 674-6025 California Independent Bancorp Announces Second Quarter and Year to Date Results Yuba City, California . . . California Independent Bancorp (NASDAQ: CIBN), the holding company for Feather River State Bank, today announced financial results for the second quarter ended June 30, 2003. Net income for the quarter was $818,000, or $0.37 diluted earnings per share, compared to $812,000, or $0.36 diluted earnings per share, recorded for the second quarter last year. Total assets at June 30, 2003 were $377.6 million, an increase of $52.2 million, or 16.0%, over total assets of $325.4 million at June 30, 2002. For the six months ended June 30, 2003, the Company reported net income of $1,924,000, or $0.87 diluted earnings per share, an increase of $366,000, or 23.5%, over net income of $1,558,000, or $0.70 diluted earnings per share, for the six months ended June 30, 2002. The provision for loan and lease losses was $10,000 for the six months ended June 30, 2003, a decrease of $290,000 compared to the same period a year ago. Noninterest income was $1,416,000, for the six months ended June 30, 2003, an increase of $197,000, or 16.2%, compared to the six months a year ago. Noninterest expense was $6,012,000, a decrease of 1.0% from noninterest expense of $6,072,000 from the same period a year ago. Total loans and leases at June 30, 2003 were $205.2 million, an increase of $4.1 million, or 2.1%, from loans and leases of $201.1 million at June 30, 2002. In today's economic environment, the Bank continues its emphasis on credit quality with high underwriting standards while maintaining competitive pricing. Securities increased $43.0 million from a year ago. The increase is due to the availability of excess funds from strong deposit growth, and pre-payment of certain loan participations. Total deposits were $310.7 million at June 30, 2003, an increase of $39.3 million, or 14.5%, from total deposits of $271.5 million at June 30, 2002. The Company continues to be diligent on asset quality. Nonperforming loans were 1.1% of total loans and leases outstanding and net charge-offs year-to-date were 0.3% of average loans and leases outstanding. The allowance for loan and lease losses was $5,963,000 at June 30, 2003, or 2.9% of total loans and leases outstanding. Net interest income for the second quarter 2003 fell 7.8% to $3,643,000 from $3,951,000 recorded in the second quarter last year. The drop in net interest income was due to compression of the Bank's net interest margin, which was 4.35% for the current year's second quarter compared to 5.38% for the second quarter a year ago. "There's no question that we've felt the impact of our net interest margin compression on our bottom line. In this current low interest rate environment it is difficult to maintain our historical spread between the yields on our earning assets and rates paid on interest bearing liabilities. We continue to monitor our asset and liability sensitivity, and the composition of our earning assets," commented Kevin Watson, Chief Financial Officer. Noninterest income for the second quarter 2003 was $597,000 compared to $620,000 for second quarter 2002. Noninterest expense was $2,992,000 compared to $3,138,000 from the same period a year ago. During the second quarter, the Company continued to execute its stock repurchase plan buying 52,442 shares of its common stock. The Company has repurchased 83,384 shares year-to-date. John Jelavich, President and CEO commented, "We are pleased with the results of the first six months of 2003, although the second quarter was not as strong as the first. Our core business continues to expand as we execute our business plan of growing the Bank with relationship customers. We continue to make steady progress in building our concentrations of business and home equity product lines as a percentage of total loans. Our branch sales force has been very Page 1 of 4 effective in the development of new business with our innovative products backed by a keen promotional campaign. As the second quarter came to an end we accelerated our plan for future growth opportunities within our existing geographical footprint. I am confident that we will continue to build on our solid foundation for the future benefit of our shareholders, customers, and employees." Feather River State Bank has nine branches in Yuba City, Marysville, Colusa, Arbuckle, Wheatland, Woodland, Lincoln, and Roseville, California serving Sutter, Yuba, Colusa, Yolo, and Placer counties. Forward-looking statements - The Private Securities Litigation Reform Act of 1995: Certain statements contained in this release are forward-looking statements that are subject to risk and uncertainty. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. A number of factors -- many of which are beyond California Independent Bancorp's ("Company") control -- could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. No assurances can be given that the Bank will continue to improve its efficiencies of operations. The Company's reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2002, and Form 10-Q for the quarter ended March 31, 2003, describe some of these factors, including certain credit, market, operational, liquidity, and interest rate risks associated with the Company's business and operations. Other factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2002, and Form 10-Q for the quarter ended March 31, 2003, include changes in business and economic conditions, competition, fiscal and monetary policies, and legislation. There are other factors besides these that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements or otherwise affect in the future the Company's business, results of operations and financial condition. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update such statements in light of new information or future events. Page 2 of 4
California Independent Bancorp and Subsidiaries Selected Financial Data Unaudited Second Quarter 2003 Earnings Release (Dollars in thousands except per share data) Consolidated Statement of Financial Condition Data: As of As of Assets June 30, 2003 June 30, 2002 ---------------- --------------- Cash and Due From Banks $15,486 $15,217 Federal Funds Sold - - Investment Securities Held-to-Maturity 2,440 2,435 Investment Securities Available-for-Sale 137,140 94,016 ------------------------------------------------------------------------------------------------------------- Total Investments 139,580 96,451 Loans and Leases 205,208 201,059 Less: Allowance for Loan and Lease Losses (5,963) (5,817) ------------------------------------------------------------------------------------------------------------- Net Loans and Leases 199,245 195,242 Premises and Equipment, Net 6,550 6,911 Other Real Estate 2,729 698 Interest Receivable and Other Assets 13,962 10,881 ============================================================================================================= TOTAL ASSETS $377,552 $325,400 Liabilities Deposits: Noninterest-Bearing $70,943 $58,773 Interest-Bearing 239,767 212,685 ------------------------------------------------------------------------------------------------------------- Total Deposits 310,710 271,458 Other Interest-Bearing Liabilities 23,707 21,610 Accrued Interest Payable & Other Liabilities 5,121 3,663 Trust Preferred Securities 10,000 - ------------------------------------------------------------------------------------------------------------- Total Liabilities 349,538 296,731 Shareholders' Equity Common Stock, No Par Value - Share Authorized - 20,000,000, Shares Issued and Outstanding - 2,073,911 at June 30, 2003 and 2,223,241 at June 30, 2002. 20,325 22,323 Retained Earnings 6,978 5,574 Debt Guarantee of ESOP (80) (120) Accumulated Other Comprehensive Income 791 892 ------------------------------------------------------------------------------------------------------------- Total Shareholders' Equity 28,014 28,669 ============================================================================================================= Total Liabilities & Shareholders' Equity $377,552 $325,400
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California Independent Bancorp and Subsidiaries Selected Financial Data Unaudited Second Quarter 2003 Earnings Release (Dollars in thousands except per share data) Six months ended June 30, Three months ended June 30, ------------------------- --------------------------- 2003 2002 2003 2002 Consolidated Statement of Income Data: Interest and Fee Income $10,350 $9,948 $5,010 $5,124 Interest Expense 2,763 2,338 1,367 1,173 ---------------------------------------------------------------------------------------------------------------------------- Net Interest Income 7,587 7,610 3,643 3,951 Provision for Loan and Lease Losses 10 300 - 150 ---------------------------------------------------------------------------------------------------------------------------- Net Interest Income After Provision for Loan and Lease Losses 7,577 7,310 3,643 3,801 Noninterest Income 1,416 1,219 597 620 Noninterest Expense: Salaries and Employee Benefits 3,393 3,452 1,673 1,774 Occupancy, Furniture and Equipment 1,061 1,044 542 529 Other Operating Expense 1,558 1,576 777 835 ---------------------------------------------------------------------------------------------------------------------------- Total Noninterest Expense 6,012 6,072 2,992 3,138 Income Before Provision for Income Taxes 2,981 2,457 1,248 1,283 Provision for Income Taxes 1,057 899 430 471 ============================================================================================================================ Net Income 1,924 1,558 818 812 Earnings Per Share Basic Earnings Per Share $ 0.90 $ 0.70 $ 0.39 0.37 Diluted Earnings Per Share $ 0.87 $ 0.70 $ 0.37 0.36 Basic Weighted Average Shares Outstanding 2,129,514 2,221,827 2,111,160 2,222,457 Diluted Weighted Average Shares Outstanding 2,206,814 2,234,188 2,193,550 2,228,499 Net Interest Margin 4.52% 5.27% 4.35% 5.38% Basic and diluted earnings per share, and the weighted average shares, have been adjusted for the six months and three months ended June 30, 2002 to reflect the 5% stock dividend distributed on September 20, 2002.
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